Open enrollment is a crucial period that brings numerous benefits to both employers and employees. This annual window, often referred to as renewal season, allows employers to update their group benefits packages while employees can elect, modify, or decline their coverage options.
The decisions made during this time frame typically set the foundation for the upcoming plan year. As a side note, insurance companies such as Blue Cross and UnitedHealthcare appreciate open enrollment season because it allows them to reassess risk and make necessary adjustments to rates and plans.
As the HR leader and CFO, your business strategy and staffing plan are just some of the things that are important to get right during open enrollment.
Budgeting and Financial Planning
Providing a group health insurance plan for your workforce can be a significant expense, often ranking among the top four most costly items on a company’s P&L statement. Open enrollment, or renewal season, is the ideal time to thoroughly analyze all costs associated with your benefits.
During this period, you should not only review your current plan versus the renewal costs but also explore alternative options. This might include considering different plan designs, such as switching from a PPO to an HMO, or evaluating different insurance carriers altogether. An independent and experienced employee benefits broker should assist you in this process.
Claims and Trends
While this analysis should be conducted more frequently, renewal time provides an excellent opportunity to take an in-depth look at claims and trends within your workforce. Depending on the level of claim data available to you, this information can be incredibly valuable for making well-informed decisions.
Claim data offers detailed insights into how employees are utilizing the health plan, highlighting the types of services that are driving costs. This information enables your employee benefits professional to make informed recommendations regarding various vendors and implement other cost-saving strategies.
Open Enrollment is For Your Employees, Too
Open enrollment is the annual period, aside from new hires and other qualifying life events, during which employees can make changes to their benefit plans. As life circumstances and personal financial situations evolve, open enrollment provides an opportunity for employees to review their existing coverage and make necessary adjustments to meet their current needs.
Having a knowledgeable and independent employee benefits professional to help manage your company’s group benefits offering is crucial. A trained benefits professional should always stay ahead, educating and advising you on all available options.
